MONEY MASTER

Asian financial markets rallied on Monday after Federal Reserve Chair  Jerome Powell  signaled a dovish policy stance at Jackson Hole, boosting risk sentiment across regional equities and currencies. The  Malaysian ringgit  gained  0.6% to 4.20 per USD , its sharpest intraday rise in three weeks, while the  Indonesian rupiah  climbed  0.5% to a one-week high . The  Taiwan dollar  advanced 0.6% and the  Indian rupee  strengthened 0.2%. Equities also posted strong gains, led by  Taipei’s benchmark index (+2.5%) , buoyed by semiconductor shares. Jakarta and Seoul rose over 1%, while Bangkok added 0.7%. Fed Pivot Boosts Risk Assets Powell highlighted growing risks to the US job market, reinforcing expectations of monetary easing: 80% probability  of a  25bps Fed rate cut in September  (Sept 16–17 FOMC). Nearly  50bps of cumulative easing priced in by year-end . The  US dollar index  stayed near a ...

The ringgit opened slightly weaker against the US dollar on Tuesday, reflecting cautious sentiment in the global currency market. As of 8:03 am , the local currency stood at 4.4595/4680 , compared to Monday's close of 4.4570/4625 . Key Drivers of Market Movement US Dollar Strength : Political Uncertainty in France : A no-confidence motion tabled over budget disagreements has supported the US dollar as a safe-haven currency. Fed's Future Outlook : Comments by Fed Governor Christopher Waller , indicating potential rate cuts in December , have raised the possibility of further monetary easing . Concerns about higher tariffs driving inflation next year may slow the Fed’s pace of easing. Mixed Sentiment Toward Ringgit : Bank Muamalat’s Chief Economist, Dr Mohd Afzanizam Abdul Rashid , highlighted that the ringgit could remain range-bound amid global market uncertainties. Performance Against Major Currencies Strengthened Against : British Pound : 5.6426/6534 (previously 5.6613...

  Asian stock markets saw gains on Monday, while regional currencies dipped as investors weighed China's stimulus measures and turned their attention to upcoming monetary policy decisions in Indonesia , Thailand , and the Philippines . China's announcement to "significantly increase" debt to support its economy lacked clarity on the overall stimulus size, leading to cautious optimism. Shanghai stocks rallied by 1.7% , while the yuan weakened by 0.2% . In South Korea , the won fell by 0.4% , and the Malaysian ringgit dipped 0.2% as the US dollar extended its gains. Singapore stocks added 0.5% , although the Singapore dollar edged lower after the Monetary Authority of Singapore kept its monetary policy unchanged, citing economic growth in the third quarter. This week’s focus shifts to rate decisions in Indonesia , Thailand , and the Philippines , with the Bangko Sentral ng Pilipinas expected to cut rates by 25 basis points to support growth. Bank Indonesia...

  The Malaysian ringgit is on track to continue its impressive rally following what may be its best quarterly performance since 1973. The ringgit has gained over 12% against the US dollar this quarter, making it the best performing emerging-market currency . Analysts believe the currency will sustain its strength due to improving trade performance , narrowing interest rate differentials with the US, and attractive asset valuations . Robust economic growth and potential inflationary pressures, should the government reduce fuel subsidies, may also prompt Bank Negara Malaysia to maintain its current monetary policy stance into 2025, even as other central banks reduce borrowing costs. Foreign investor inflows and continued conversion of foreign currency deposits will further support the ringgit's strength. Jeff Ng, head of Asia macro strategy at Sumitomo Mitsui Banking Corp , commented that Malaysia’s current account surplus , combined with a neutral central bank and stable fun...

  The ringgit appreciated against the US dollar this morning, buoyed by expectations of an interest rate cut in the US following recent economic data. At 8 a.m., the ringgit rose to 4.3305/3380 against the greenback, compared to the previous day's close of 4.3330/3370 .

The Malaysian ringgit is showing strong signs of recovery, driven by robust economic growth and expectations of an imminent interest rate cut by the Federal Reserve (Fed). After hitting a 26-year low in February, the ringgit is now less than 1% away from recovering its losses for the year. Oversea-Chinese Banking Corp predicts that the ringgit will appreciate to 4.60 per dollar by mid-2025. As of early Wednesday, the local currency rose 0.2% against the US dollar. Factors Supporting the Ringgit's Rebound: State Support and Currency Measures: Bank Negara Malaysia has encouraged state-linked firms to repatriate and convert foreign income. The central bank has utilized forwards to support the ringgit. Global Technology Cycle: An upturn in the global technology cycle is aiding the recovery of Malaysian exports. Yield Differential Dynamics: The Fed's anticipated rate cut is expected to narrow the record discount to the US, making ringgit-denominated assets more attractive to dollar-...

My personal take on the Ringgit's weakness that have continued The Malaysian Ringgit's weakness persists, and have reached close to level not seen since the Asian Financial crisis in 1997.  And if you are not concern, then this chart should show you otherwise.  Malaysian Ringgit was the second worst currency performing in Asia, behind the Japanese yen, ever since Donald Trump's surprise victory in the presidential election in the United States. Here are some of the things that have been said about the Ringgit. 1) The Ringgit has suffered more in general because of the higher percentage of foreign holding in the bond market. 2) Uncertainties over Trump's policy once he takes over has caused concern over emerging market and Ringgit. 3) Fundamentals have not change. The Ringgit is undervalued, but uncertainties are making it less attractive.  Honestly, it's difficult to tell if it's really just Trump that had caused the wea...